In light of the continent-wide energy crisis, the French government is offering €9.7bn ($9.85bn) for the takeover of Électricité de France (EDF). This deal will give them full control over Europe’s largest nuclear power operator, ensuring continued electricity supply for the country at affordable prices. Reuters also notes that this move will save the company from its growing debt burden, which will reach close to €100bn ($102bn) this year. According to Reuters, EDF bondholders also welcomed the proposed buyout, seeing it as a signal of support amid its operational woes, which include outages, delays and capped prices meant to protect households from surging prices. France is offering other minority shareholders €12/share, which bears a 53% premium over the closing price on July 5, the day before the government declared intent for the buyout of EDF. The state already owns 84% of the electricity producer.
EDF’s 3.625% 2025s are trading lower at 97.9, down by 0.5 points at a yield of 4.31%.
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